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Sat. Dec. 11, 2010

Progress Update – November 2010 *

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in November, extending the streak to 5 consecutive months of increases after June 2010′s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 34 of the last 36 months.

My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2010 Investing Goals post. Below is an updated version of the table found in the original post.

Description Dividend
Income
Annualized
Yield
on Cost
2027 Goal 110,000 20.00%
2017 Goal 30,000 10.00%
2010 Goal 9,500 5.00%
December/2009 7,274 4.84%
Purchases YTD 5,341 -0.27%
Div. Changes YTD -74 -0.03%
Sales YTD -1,663 0.00%
November/2010 10,878 4.54%
Purchases 786 0.02%
Div. Changes -8 0.00%
Sales -451 -0.02%
October/2010 10,551 4.62%

The above information covers the current month and year-to-date through the current month.

Click here for a Detailed Historical Progress Table.

For the month, annualized dividend income increased $327, and Yield on Cost (YOC) was flat (0.00%). This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:

Purchases: The $786 increase in annual dividend income and 0.02% decrease in YOC related to the following purchases (yield at the time of purchase):

CINF and PFF  increased my YOC, while three securities lowered it. As noted in earlier updates, I generally expect YOC to drop each month since most new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset it.

Dividend Changes: The $8 decrease in annual dividend income and the flat (0.00%) YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • ($8) U.S. Preferred Stock Index (PFF) $2.36a>$2.30a

Sales: The $451 decrease in annual dividend income and the 0.02% increase in YOC related to the following sale:

  • ($451) Invest Grade Corp Bond (LQD)

With one months to go, I believe there is an excellent chance of achieving $11,000 in annualized dividend income by December 31, 2010, assuming no or minimal dividend cuts.

That’s it for this time. The next monthly progress update will be early January.

(Photo: sanja gjenero)


4 Responses to “Progress Update – November 2010 *”

  1. usnrad says:

    I am a new subscriber to your site and new to dedicated dividend investing. Do you tend to reinvest your dividends or use those funds for “new” investments (and why)?

    Thanks for all the knowledge you share!

  2. D4L says:

    usnrad: Each month I fund my account with an amount I set aside for income investing. To that I add the dividends earned. I then select the best dividend stocks available based on valuation, dividend fundamentals and my overall allocation needs and invest in them.

    Best Wishes,
    D4L

  3. Donnie says:

    Hi D4L,

    I am a new member but have been reading your site for over a year now. I appreciate the advice and information you provide. One question though, in November you bought a sizable amount of PFF. I was wondering what your buy price would be for this ETF and if you ever provide analysis of these.

    Thanks in advance!

  4. D4L says:

    Donnie: Both PFF and MLPI are oddities in my income portfolio in that they do not pay a consistent dividend. For the most part I have eliminated ETFs like these from the income portfolio. I hold both of them for allocation reasons and ultimately may end up transferring them to my Asset Allocation portfolio. Since an ETF is made up of many underlying securities a direct analysis is problematic.

    Best Wishes,
    D4L